Spending on spectrum

San Antonio-based phone giant AT&T Inc. will make an initial down payment of $1.3 billion to the Federal Communications Commission for wireless spectrum it won this week in a government auction.

In a securities filing made Friday, AT&T said it will make the down payment within the next 10 business days. The company already has paid $500 million prior to the start of the auction. It will pay the remaining $5.3 billion balance on or before April 17.

AT&T says it will use funds from operations and either short-term or long-term debt to fund the purchase price.